Let me tell you about a calculation you may not have thought through, but it is absolutely true:
Assuming you trade contracts with 100 times leverage:
Opening and closing a position once incurs a fee of one thousandth (0.001). Don't underestimate this one thousandth.
If your principal (margin) is 1000 USD, 100 times leverage means you control a position of 100,000 USD. For each buy and sell, the fee is 100,000 * 0.001 = 100 USD! (In reality, contract trading may exceed ten times a day)
Even if you only make 3 trades a day, the fee is 300 USD.
What about a month? 300 * 30 days = 9000 USD!
What about a year? 9000 * 12 = 108,000 USD! With a principal of 1000 USD, just trading fees could lead to over 100,000 USD in a year! Enough to buy a good car, right?
The same goes for spot trading, with a principal of 100,000 USD:
Currently, platform rates generally range from one thousandth to two, calculated at 0.2% (already considered low).
For each buy and sell, completing a transaction incurs a fee of 0.4%.
With a principal of 100,000 USD, the fee for buying and selling once is 400 USD.
If you are an active trader, trading 3 times a day would result in 1200 USD a day.
After 30 days in a month: 36,000 USD!
What about a year? 432,000 USD! Over four hundred thousand USD gone! What can be done with this money?
This is why many traders work hard to trade, watching their account balance fluctuate, only to find that they are not making money or even losing money! Because if you buy and sell at break-even (trading back and forth but with unchanged prices), the fees alone could eat away several times or even dozens of times your principal in a year! And if the market fluctuates and you lose a bit more, just think how terrifying that is?
So what to do? The core is: increase income and reduce expenses.
Reduce expenses: fee discounts
Using BNB to offset fees (official Binance feature) can save you some money, and you can handle this step yourself.
Increase income: rebate sharing
This is the key point I urge you to seriously consider. Binance has an official rebate program.
In simple terms: if you register, open an account, and trade using my exclusive link, a part of the fees you pay will be returned to me by Binance (equivalent to a reward for referring you).
What I’m doing now is very simple: I take this part of the rebate I got from Binance and give most of it directly to you! This means the fees you pay are essentially returned to your own pocket!
This money is not an additional fee you pay to me; it is the rebate from Binance, which I share with you! It is the recovery of the fees you have paid!
This is not some abstract concept; it is real money that can be credited to your account every month or regularly.
For example, in your previous contract example, if several thousand or even tens of thousands of dollars in fees are generated in a month.
I distribute the rebates I receive proportionally to you, and you could get back several hundred to several thousand USD in a month.
This money can be taken out to improve your living conditions, supplement household expenses, or serve as your next trading capital, allowing you to attack and defend.
If you make a profit: the rebate sharing is pure profit addition. If you incur losses: the rebate sharing can effectively compensate for the speed of your account's losses, effectively increasing your survival ability, allowing you to stay afloat.
